Financial crisis still weakening US middle class: Fed

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Financial crisis still weakening US middle class: Fed

On Friday, the 10th of May 2019, a Federal Reserve policymaker, Lael Brainard said the middle-class economy of United States had not yet recovered from the calamitous impact of the great financial depression more than a decade ago.

At a Fed Conference on Friday (May 10th), Lael Brainard had also added that the Federal Reserve had remained on a high-alert over the situation, as there had been a sluggish development of the wage growth and home ownership figures had also remained disdainful.

Besides, the Fed policymaker had also pointed towards an intensifying inequality in United States economy, while many US middle-class families had been finding it increasingly difficult to meet their current expenses, and savings or left-over had become a distant dream for more and more families amid a rising home expense and education cost.

According to the Fed data released at the end of 2018, families belong to the middle-income-pyramid had average assets of around $3,40,000, terrifyingly which had been less than the era of great financial depression between 2007-2009.

While addressing to the growing gap between middle-class and wealthy ten percent residing at the top of the pyramid, the Fed director had been quoted saying that the shift of wealth had been thirteen times in contrast to earnings of a middle class family, while a Bundesbank survey conducted in 2017 had revealed that the top ten percent of the economic pyramid had been holding more than 55 percent of assets in United States.